Why not invest in PPP for Ring Road No. 5 project in Vietnam's Capital Region?

The proposed investment model for Vietnam's Ring Road No. 5 project, connecting the Capital Region, has sparked debate regarding the extent of state involvement. According to Minister of Construction Tran Hong Minh, if the project were to proceed under a Public-Private Partnership (PPP), the state would need to contribute as much as 80% of the capital, with a projected payback period of 25 years.

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Nếu đầu tư theo hình thức PPP dự án Vành đai 5 - Vùng Thủ đô, Nhà nước cần tham gia lên tới 80% số vốn và thời gian thu hồi vốn kéo dài trong 25 năm.

During a National Assembly session on August 12, Nguyen Thi Viet Nga, a delegate from Hai Phong, questioned the allocation of funding responsibilities. She specifically requested clarification on the capital sources for the railway branch line from Nam Hai Phong station to Nam Do Son port and the parallel road section of Ring Road No. 5 within Hai Phong city.

Nga pointed out that Hai Phong is currently responsible for mobilizing resources for the branch line and Nam Do Son station. Additionally, the city needs to allocate approximately 17,755 billion VND for the parallel road section of Ring Road No. 5. She argued that if the city also commits around 6,000 billion VND for the Nam Do Son branch line, its remaining budget for new projects would be less than 700 billion VND. Nga urged the National Assembly to consider allocating central budget funds for these components, emphasizing that local resources would be insufficient if heavily directed towards national infrastructure.

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Nếu nguồn lực địa phương bị dồn quá lớn vào những cấu phần hạ tầng mang tính quốc gia, thành phố sẽ thiếu vốn cho chính những dự án tạo tăng trưởng mà Trung ương giao địa phương thực hiện

Delegate Ta Thi Yen, Deputy Head of the National Assembly Office for Delegate Affairs, added that out of the total 349 km of Ring Road No. 5, only about 116 km are prioritized for the 2026-2030 period. Given limited resources, Yen suggested prioritizing sections that can be independently exploited, create immediate network effects, open new development corridors, and are ready in terms of land clearance and funding. Minister Tran Hong Minh acknowledged the project's importance in connecting economic and industrial centers and transportation hubs within the region, stressing the political will to implement it.

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Không nên dàn đều vốn theo địa giới hành chính hoặc chiều dài tuyến. Cần ưu tiên đoạn có thể khai thác độc lập, tạo ngay hiệu quả mạng lưới, mở hành lang phát triển mới và đã sẵn sàng về mặt bằng, nguồn vốn.